1/13/26
First Southwest Bank, with the support of Gary Community Ventures, has launched the “Child Care Capital and Infrastructure Fund” to support the child care facility financing needs of rural Colorado child care businesses.
Expanding child care capacity requires the acquisition, renovation, and development of physical space. The pilot $5M Child Care Capital & Infrastructure Fund addresses this need by enabling both new and existing child care providers to secure properties, expand operations, and renovate outdated facilities to meet the growing demand for services. Administered by First Southwest Bank, a CDFI bank, this fund will drive significant improvements to the child care market’s physical infrastructure.
Gary Community Ventures has provided a $1M guarantee for loans provided through this program. Licensed child care providers, including in-home family providers as well as large centers will be able to access loans from $10,000-$2,000,000. Interest rates for lower amount loans will range from 3-4%, and larger loans from 4-6% — well below market rates.
“We are thrilled to partner with Gary Community Ventures to offer accessible, low-interest loans to child care providers across rural Colorado. Accessible child care enables workforce participation and economic growth, yet in rural communities it can be incredibly difficult to start or expand a child care business. This fund will help create much-needed child care slots. As a Community Development Financial Institution, providing financing that expands access to child care and strengthens our communities is core to our mission.” Kristy Esquibel, Chief Credit Officer, EVP, First Southwest Bank.
Loans can be used to assist with business start-up and equipment costs, facility acquisition, renovation, and refinancing; or to support infrastructure improvement or expansion. This fund aims to increase physical capacity for child care across rural Colorado. FSWB will provide the necessary oversight to guarantee that funds are allocated to projects that align with long-term child care objectives and the overall growth of the sector.
“At Gary, we believe that every Colorado family should have access to quality, affordable child care.” states Catherine Toner, Managing Director of Impact Investing at Gary Community Ventures. “One way to achieve this is by expanding child care supply through low-cost, accessible financing—especially in a sector where margins are thin and traditional lending models often fall short. We hope that this pilot can create new opportunities for providers, who form the backbone of our early childhood system.”
The Child Care Infrastructure & Capital Fund will partner with Early Childhood councils and economic development groups across rural Colorado to help deploy these funds to high need areas and connect with child care providers looking to expand their operations. The Fund’s inaugural partnership is with the Early Childhood Council of La Plata County and the La Plata Economic Development Alliance to support the implementation of La Plata’s Early Child Care Investment Strategy. The Child Care Investment Strategy lays out three funds needed to support La Plata’s child care ecosystem, with an Infrastructure & Capital fund highlighted as an immediate need to expand capacity.
If you are interested in accessing capital for your child care business through the Capital & Infrastructure Fund, please visit the web page here.